How seasonal changes effect business and consumer behaviour?
Income and revenue generated by businesses are different in seasons due to the changes of consumer behavior and spending habits. Weather affects practically every consumer purchase decision. As a business owner, this uncertainty makes it difficulty to plan the monthly budget. To understand this relationship, we can be leveraged to the market products and gain competitive advantage.
Start from the first quarter of the year, from January to March, New Year’s Eve and Chinese New Year influence consumer behavior is though if effect on spending household product and increase the level of consumption. Also, long weekend has turned out to be a bright spot for tourism sectors. The demand of travel business continuously increasing in the second quarter from Songkran festival, and the hot weather driven the demand of cold drinks and air conditioner. In May, time to go back to school, this is the best time for launching saver pack because most of family will save money and spend on necessaries for their kids to start the new semester in May.
In the third quarter, from July to September, shifting seasons are directly linked to weather fluctuation and rainfall that effect the spread of diseases and impact on profits of hospitality industry because the numbers of patient have increased. Futhermore, flood and heavy rains raise the demand for water pumper, brick and sandbag, but it has negative effect on the construction business because it is likely to delay the duration. In the last quarter of the year, this is the most competitive and profitable of the year. Holidays are the time when people are in the happy mood, so they are more likely to spend more money and more purchases during Christmas and New Year. And Tourism business become boom again during New Year holiday.
However, the seasonal changes do not effect the consumer behavior in some businesses ,indicate the consumer behavior is not depend on the seasonal effect, such as public transportation, mobile and internet network, and financial institution. This is not the only factor that influence the businesses and consumer.Therefore, the investors have to evaluate your comfort zone in taking on risk before invest in any businesses.
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